BOSTON, June 1 /PRNewswire/ -- The Coalition of Non-Utility Generators (CONUG) today released an extensive study which demonstrated that there are a number of benefits which can be gained when electric power is generated from sources other than traditional utility owned facilities. The study, titled "Competition in Electricity Generation: The Risks and Merits of Independent Power Production in Massachusetts," corrects a number of misconceptions and advances the discussion on the impacts of non-utility generated power.
Non-utility generators (NUGs), also known as independent power producers (IPPs), have been increasing since the U.S. Congress passed the Public Utilities Regulatory Policy Act (PURPA) in 1978. The emergence of a strong independent power industry had created increased competition in what was once a tightly controlled field, but with that competition has come criticism, including arguments that IPPs cause electric rates to rise, harm the environment and threaten electric system reliability. In light of this region's prolonged recession and the short term surplus in electrical capacity, these arguments have been the basis of calls to limit the role that IPPs play in the power industry.
The CONUG study examined these assertions and found that independent power projects have a positive rather than negative impact when compared with the alternatives available to the utilities. By undertaking a thorough examination of the relationship between utility and non-utility generators the study concluded, "In almost every instance, IPPs bid less than what utilities said it would cost them to produce power and IPPs have not been a major cause of growth in electricity rates, nor are they likely to be in the future." The report also stated, "IPPs have been exceptionally reliable and are significantly more environmentally benign that most existing utility owned facilities."
The report points out the importance of having cleaner, more efficient power generating facilities and calls on regulators to work to improve the relationship between investor owned utilities and IPPs, rather than pursuing measures which seek to limit competition by reducing the role of IPPs. By working together, the study said, "this partnership can become an important engine for ensuring the availability of reliable and competitively priced electricity and stimulating economic development."
CONUG is a trade group comprised of a number non-utility generators throughout Massachusetts. Together these firms represent over 3,000 construction jobs, 400 permanent jobs and nearly $13 million in new tax revenues to Massachusetts municipalities on an annual basis.
-0- 6/1/93
/CONTACT: Ken Roberts of CONUG, 508-224-2205/

CO: The Coalition of Non-Utility Generators ST: Massachusetts IN:
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DD -- NE017 -- 4180 06/01/93 18:02 EDT

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